We have local employment law offices in and around Los Angeles, San Diego, Orange County, Riverside, San Bernardino, Ventura, San Jose, Oakland, the San Francisco Bay area, and several nearby cities. In some areas, however, it is silent as to its application to public employers. 8 CCR 11010(2)(c)-(e) – Administrative exemption regulations. S/he can also sue for interest and attorney’s fees/litigation costs.35. This also doesn’t mean that they don’t exercise independent judgment.18, But an employee who has to consult a superior for most decisions probably does not qualify. The administrative exemption is the rule under state and federal law that California overtime laws do not apply to administrative employees. California Labor Code Sec. California Labor Code Section 515.6 CA Labor Code § 515.6 (2017) Cloudflare Ray ID: 60533348bba706bd Please enable Cookies and reload the page. California Codes > Labor Code > Division 2 > Part 2 > Chapter 1 > § 515.8 Current as of: 2019 | Check for updates | Other versions (a) Section 510 does not apply to an individual employed as a teacher at a private elementary or secondary academic institution in which pupils are enrolled in kindergarten or any of grades 1 to 12, inclusive. Download . She also has to consult a manager before disciplining a driver. 3. (a) PAGE 4 BY JUSTIN LO, ESQ. CA Labor Code § 515.8 (2017) (a) Section 510 does not apply to an individual employed as a teacher at a private elementary or secondary academic institution in which pupils are enrolled in kindergarten or any of grades 1 to 12, inclusive. Rex’s work involves specialized technical skills. What is the required salary for the California administrative exemption? [ Approved by Governor September 09, 2020. She has considerable discretion in her job. ; Computer network, internet and database administration. ), An employee on a team responsible for negotiating a real estate transaction. See United Parcel Service Wage & Hour Cases, supra note 17, at 1020-21. (b) For purposes of this section, “employed as a teacher” means that the employee meets all of the following requirements: What is the “administrative exemption” in California labor law? Labor Code 515 – Administrative exemption. Justin Lo is a labor and employment attorney with a practice centered in Torrance, California Mr. So the administrative exemption still applies to him..29, Whether an employee primarily does exempt work is determined by his/her actual work. (This can pertain to either the employer or its customers. Get full details of Cal. Sometimes employers wrongly classify a large group of employees under the administrative exemption. Does California or federal law determine the administrative exemption? If an employer misclassifies an employee as exempt, s/he may owe back overtime pay. (3) Professional Exemption. Labor Code, § 1033.↥ Labor Code, § 226.7, subd. In addition to the increased salary requirement, a California computer professional must also still satisfy the duties test set forth under Labor Code Section 515.5. 8 California Code of Regulations (“CCR”) 11010, 29 Code of Federal Regulations (“CFR”) 541.201(b), Bothell v. Phase Metrics, Inc. (2002) 299 F.3d 1120, Hill v. R+L Carriers, Inc. (2010) 690 F.Supp.2d 1001, California Department of Industrial Relations, Minimum Wage. There are two requirements for the administrative exemption to apply in California. Tagged Ari Moss, California Labor Code § 515, Conrad L. Rushing, Dennis F. Moss, Eugene M. Premo, Franklin D. Elia, Michael A. Bishop, N. Kate Jeffries, Salary Basis Test Email Subscription Enter your email address to subscribe to this blog and receive notifications of new posts by email. California Labor Code section 515.5 exempts certain computer software professionals from overtime compensation who receive specified minimum compensation. (a) 3 Labor Code, § 515, subd. S/he just needs to spend more than half of working hours on administrative work.28. Example: David is a manager at a package delivery company. Please complete the form below and we will contact you momentarily. 515.8. A person employed in a professional capacity means any employee who meets all. What if an employer misclassifies an employee under the administrative exemption? An employee can file a wage/hour lawsuit to collect this pay. Full–time employment is defined in Labor Code Section 515(c) as 40 hours per week. Section 515. If so, they can bring a wage/hour lawsuit for compensation. Labor Code sec. Employers will owe one hour’s pay for each meal or rest break the employee should have received.36. (For smaller employers, it was $12/hour.)32. The administrative exemption also means that these employees also are not entitled to meal and rest breaks. 5. California Codes > Labor Code > Division 2 > Part 2 > Chapter 1 > § 515 Current as of: 2019 | Check for updates | Other versions )7, Overtime is not the only employment law area where the administrative exemption applies. California Labor Code section 515.5 exempts certain computer software professionals from overtime compensation if they receive specified minimum compensation. 8 CCR 11010(2)(b) – Administrative exemption regulations. But Tanya is paid a monthly salary of only $2500. Very helpful with any questions and concerns and I can't thank them enough for the experience I had. 511. (e).↥ Labor Code, § 515, subd. A misclassified employee may be able to bring a wage and hour lawsuit for unpaid overtime wages. )10, For educational employees, exempt work involves the administration of the school or a department. Example: Tanya works as a manager at a start-up that creates internet content. The Labor Code clearly applies to private employers. CA Labor Code § 516 (2017) (a) Except as provided in Section 512, the Industrial Welfare Commission may adopt or amend working condition orders with respect to break periods, meal periods, and days of rest for any workers in California consistent with the health and welfare of those workers. They may still be exempt administrative employees.17, Most employees also have superiors review their decisions. This law reads that: “(a) The Industrial Welfare Commission may establish exemptions from the requirement that an overtime rate of compensation be paid pursuant to Sections 510 and 511 for executive, administrative, and professional employees, if the employee is primarily engaged in the duties that meet the test of the exemption, customarily and regularly exercises discretion and independent judgment in performing those duties, and earns a monthly salary equivalent to no less than two times the state minimum wage for full-time employment. This is equivalent to earning $26 an hour for forty hours a week, four weeks a month. But once in a while, David has to help delivery drivers make their deliveries. Example: Gina works as a dispatcher for a delivery company. For more detailed codes research information, including annotations and citations, please visit Westlaw . Performance & security by Cloudflare, Please complete the security check to access. It applies to exempt employees whose work is considered administrative.6, Labor Code 515 LC deals with the administrative exemption. (2019-2020) An act to add Section 515.7 to the Labor Code, relating to employment, and declaring the urgency thereof, to take effect immediately. 515.5 defines when computer software professional in California can be considered exempt. 8 CCR 11010(2)(f) – Administrative exemption regulations. Neither is selling products in a retail setting.13, Not all highly-skilled workers are administrative employees under LC 515. Management and business operations mean areas of work such as: Working on a manufacturing production line is NOT exempt work. (a); Cal. AB-736 Employee classification: professional classification: specified educational employees. An insurance claim adjuster who conducts interviews, inspects property damage, and evaluates claims. The California Labor Code, more formally known as "the Labor Code", is a collection of civil law statutes for the State of California.The code is made up of statutes which govern the general obligations and rights of persons within the jurisdiction of the State of California. They are set out in Labor Code 515. See, e.g., Hill v. R+L Carriers, Inc., supra note 19, at 1005. If you are on a personal connection, like at home, you can run an anti-virus scan on your device to make sure it is not infected with malware. Is it Illegal to Leave a Dog Unattended in the Car? This is because it is generally more favorable to workers.38, But federal law is often used to help interpret the Labor Code 515 administrative exemption.39. Employees who don’t fall under the administrative exemption must be paid overtime when they work, Overtime means time and a half—or in some cases double the regular hourly pay.34, A non-exempt employee who is wrongly classified as exempt can sue his/her employer for unpaid overtime. Both California and federal law have an administrative exemption from overtime law.37, California law is controlling for the California administrative exemption. United Parcel Service Wage & Hour Cases, supra note 17, at 1015. It can apply even if s/he regularly does non-exempt work. Labor Code Section 515.5 provides that certain computer software employees shall be exempt from the requirement that an overtime rate of compensation be paid pursuant to Labor Code Section 510. , if certain criteria are met. (3) Professional Exemption A person employed in a professional capacity means any employee who meets all of the fol- lowing requirements: But her salary is too low for the administrative exemption. Division 2 - EMPLOYMENT REGULATION AND SUPERVISION. An executive assistant who works closely with a top executive of a major company. This work must be directly related to academic instruction.11. S/he can collect the unpaid overtime pay. S/he would not exercise the independent judgment required for the exemption.19. Shouse Law Group has wonderful customer service. An on-going debate regarding whether certain provisions of California's Labor Code apply to public entities may be a bit closer to resolution. Second, his/her job duties must satisfy certain requirements.9 These are: An “administrative employee” must perform office or non-manual work. § 515.8 (a) Section 510 does not apply to an individual employed as a teacher at a private elementary or secondary academic institution in which pupils are enrolled in kindergarten or any of grades 1 to 12, inclusive. Shouse Law Group is here to help you fight back. 8 CCR 11040(11)(B) — Administrative exemption regulations. What is “sextortion” under California law? She also dispatches drivers based on computer-generated assignments. Lo strongly supports dignified and lawful treatment of all employees in the workplace. See United Parcel Service Wage & Hour Cases (2010) 190 Cal.App.4. (b) (a) Section 510 does not apply to an individual employed as a teacher at a private elementary or secondary academic institution in which pupils are enrolled in kindergarten or any of grades 1 to 12, inclusive. They must do this “customarily and regularly” in the job.16, Many employees have procedures and guidelines to follow at their jobs. She oversees the content writers’ work. She schedules delivery appointments with customers. Chapter 1 - GENERAL. § 515.5 (a) Except as provided in subdivision (b), an employee in the computer software field shall be exempt from the requirement that an overtime rate of compensation be paid pursuant to Section 510 if all of the following apply: (1) The requirements are both vague and detailed. 2 Labor Code, § 515, subd. Employees must earn a monthly salary at least twice the California minimum wage for full-time work.31, In 2020, the state minimum wage was $13/hour for employers with 26 or more employees. Part 2 - WORKING HOURS. Here are some examples of employees who meet this requirement: The administrative exemption to overtime laws requires that the worker “primarily” do administrative work.25, This means that the employee must spend more than one-half of their work time on exempt work.26, Exempt work is work that fits the three requirements just discussed. So for most employees to be exempt under LC 515, they must earn a monthly salary of over $4,000 per month. 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